City sets vote to renew tax, use 5% for trails

FORT SMITH -- Voters in Fort Smith will decide May 12 whether to renew a 30-year-old street improvement sales tax and to divert 5 percent of the tax to pay for development of a trail system.

In a meeting Tuesday, the seven city directors unanimously passed an ordinance setting the special election date and the ballot titles. The ballot will be composed of two questions: one on whether to renew the tax for another 10 years, the other on whether to allocate 5 percent of the tax revenue to build trails and bikeways around the city.

City directors Tuesday also passed a resolution endorsing continuation of the street tax and approval of the 5 percent allocation for trails and bikeways.

"Expanding the use of such tax to enhance other forms of surface transportation through the form of multi-use trails and bikeways will further advance economic development and quality of life initiatives in the city of Fort Smith," a portion of the resolution stated.

Some residents have voiced opposition to diverting any money from the tax for trails, saying every penny was needed to keep the city's streets in good repair.

City Director Andre Good said he supported one resident's suggestion to divert 1 percent of the tax revenue going to street capital improvements and devote it to improving drainage, which Good said was a persistent problem throughout the city.

If approved for renewal, the street tax is estimated to generate about $20 million a year for Fort Smith streets, bridges and associated drainage.

Residents in Fort Smith have voted twice since initial passage in 1985 to approve the 1 percent sales tax. Money from the tax has been used to rebuild and widen several transportation arteries in town, overlay and repair neighborhood streets, and improve drainage throughout the city.

In a study session last week, city directors considered asking voters for a 10 percent allocation of the street tax for the trails and bikeways. Over 10 years, that allocation would raise $20 million.

Trails and bikeways committee members told directors last week that it could cost as much as $17.5 million to develop the 34 miles of trails the committee has recommended building in Fort Smith.

Plans are to ring Fort Smith with a continuous route of free-standing trails and bikeways on city streets. The system also would provide trails and bikeways through town, such as from the University of Arkansas at Fort Smith campus to downtown.

Committee member Bill Hanna said Tuesday that trails and bikeways were more than a fitness and recreation issue: They're an economic issue that would help recruit new business and industry to the city.

"It's a job creator," he said.

After hearing the interest from the business community in contributing to the trails development and in response to opposition to diverting tax money from streets, the directors decided to reduce the proposed allocation to 5 percent and rely on private sector contributions and possible government grants to supplement project funding.

Five percent of the street tax would generate an estimated $1 million a year, or $10 million over the term of the tax.

Metro on 01/21/2015

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